Nafis Changes From September 2026: What UAE Employers Need to Check Now

Nafis changes September 2026 introduce important updates that UAE employers should understand before the revised framework takes effect. From September 2026, the Emirati Talent Competitiveness Council (ETCC) is rolling out this revised Nafis framework. Most coverage so far has focused on what changes for Emirati employees. Less attention has gone to what changes for the businesses employing them — and two of the changes carry direct cost and compliance exposure.

1. You now carry the full pension contribution

Until now, Nafis has reimbursed 2.5% of the employer’s pension contribution for Emiratis earning below AED 20,000/month. From September, that reimbursement stops. Employers take on their full statutory share of GPSSA contributions for this salary band, in addition to the employee’s share the Eshtirak scheme continues to support.

For employers with several Emirati hires in the AED 6,000–20,000 range, this is a direct, recurring cost increase — not a one-off adjustment. Worth running through payroll now rather than discovering it in September’s numbers.

2. Support is suspended below AED 6,000 — and Nafis has flagged penalty exposure

Any Emirati employee paid below AED 6,000/month loses Nafis support outright from September. Nafis has explicitly stated that employers who don’t meet the minimum wage requirement may face administrative penalties and fines under labour regulations.

If you have Emirati staff on contracts that haven’t been updated to the AED 6,000 minimum (effective since 1 January 2026, full compliance required by 30 June 2026), this isn’t just a Nafis issue anymore — it’s a compliance issue with two separate exposure points.

3. Existing beneficiaries aren’t grandfathered indefinitely

If an Emirati employee was registered with Nafis on or before 14 August 2026 and currently receives more than the new support caps, their support doesn’t drop immediately — it steps down by AED 500 every six months until it reaches the new ceiling. New registrations from September go straight to the new caps.

New maximum monthly support levels, by qualification:

Employees earning AED 20,000–30,000/month see support reduced by AED 500 every six months until it reaches zero.

4. Free zone employees run on a separate timeline

Emirati staff in free zones not covered by the AED 6,000 minimum wage requirement get a slower transition: support unchanged from September 2026 to February 2027, reduced by 30% from March–August 2027, by 70% from September–November 2027, then ends.

5. Child allowance is uncapped, but the amount is confirmed at AED 600/child

The previous four-child cap is removed. Support is AED 600/month per eligible child, provided the employee’s salary doesn’t exceed AED 50,000/month. Two new adjacent schemes — support for children of Emirati mothers, and for wives of Emirati men, both working in the private sector — launch alongside this, each up to AED 3,000/month, subject to separate eligibility conditions.

What to do before September

• Audit Emirati payroll against the AED 6,000 floor. Any gap is now a two-front risk — labour law penalty exposure and lost Nafis support.

• Model the pension contribution cost for Emirati staff earning under AED 20,000, factoring in the employer’s now-uncovered share.

• Check registration dates for existing Nafis beneficiaries against the 14 August cutoff, so you know which employees step down gradually versus start fresh at the new caps.

• Flag free zone entities separately — the transition schedule is materially different and shouldn’t be modelled on the mainland timeline.

Source: Emirati Talent Competitiveness Council (ETCC), announced 14 April 2026, effective September 2026. This briefing reflects publicly available ETCC guidance current as of publish date; employers should confirm final scheme details directly with Nafis ahead of implementation.